We are watching the third quarter earnings and we see some winners and some losers. Each stock reacts differently. A lot depends on where the stock is coming from before the earnings release. A stock like AMZN that traded up to almost 100... yesterday had no room for error. Had I owned it I would have been happy all the way to the bank at 99. Its come up from 50...well... it was even lower than that last year. The earnings were okay, margins weaker... and the stock is down 9 bucks. And in my opinion going lower... but am doing nothing.
AAPL had a stellar quarter by all counts and though the stock has had a voilahoola run this year... from 78 to 175 before the earnings. The upbeat quarter was worth another 10 bucks and its 185 today. It goes higher... but am doing nothing.
COH (Coach) I thought was a good trade at 40 and bought some... but it had a glum consumer spending outlook for the holiday season... and its down to 36 and change... OUCH. That hurt. Who asked me to venture before the earnings. No matter how much you know that holding stock positions before the earnings report is dangerous... one does make such mistakes. I am not going to stop loss this one. I am going to watch. I think it has support around the 35 area and the stock is down too much - trading at cheaper valuation... as it did not bring down its estimates.
For now EBAY and CSCO look like safe and steady bets. EBAY had great earnings and upped estimates, still got beat up from 41 to 36... We are in it ... for the rally that ensues some time soon. CSCO I added some at 31- its a no-brainer for reasons stated in my blog a couple of times...
Stay tuned as we find more opportunities. Forgot to mention YHOO- looks like breaking out above 30... may take it to 34... if the ALIBABA IPO next week is a sensation as most chinese IPOs are these days. YHOO has a big enough stake in the company to make it move higher ... is my opinion. Nibbling a bit on YHOO at 30.25 today... for a quick trade.
GOOD luck and happy trading... all.
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